Solar power generation is still a good investment
Published December 12th, 2017
Solar photovoltaic (PV) still remains a strong investment opportunity according to renewables experts with potential returns of 12 per cent to 16 per cent still possible.
Despite weakening support tariffs wholesale electricity sales remain firm with recent price rise announcements from the major generators. Electricity costs have risen by as much 12.5 per cent and many farmers and landowners will be surprised to learn that returns from solar power generation have only changed marginally over the past six years.
The press around Feed in Tariff (FIT) reductions has cast a negative shadow over sector investment and the opportunities created by increasing electricity prices tend to be overshadowed by the reported impact on households. However, the reality is that increases in electricity sales returns and installation cost reductions have had a compensating effect on investment returns.
The 2011 cost of a 40kW roof mounted system was about £106,000 fitted and cost was subsidised with a 32.9p/kWh income. Cuts in the tariff of as much as 67 per cent (in 2016) reduced this element of income to 4.39p/kWh but the cost of installing the same system has also fallen and is now about £40,000 and therefore offers a comparable, if not better, return on investment.
Mark Morison, partner at property professionals Berrys commented: “PV continues to present a low risk, low maintenance opportunity with the delivery of excellent returns particularly where there is an on-site power demand to be off-set.
“The investment is therefore ideal for farm and commercial businesses who need power and who often have appropriate roof space on which to site the installation”.
For more information contact Mark Morison at the Shrewsbury office of 01743 290647 email firstname.lastname@example.org